SIRI Intraday Thread: Tuesday March 31st

[bananaz]

exilejeff, I wouldn't sell at this price, but this is just my opinion. What you could do, is sell Jan 2011 2.50 Call for .80. This way you get 2800 $ and still hold the shares and you can use that money to buy Sirius shares.

OK Choirgirl, I've never dabbled in options before so let me see if I understand this.

If I own 1,000 shares of SIRI, I can sell Jan 2011 $2.50/share covered calls @ .80/share (?) and pick up $2,800.00 but risk the shares being called if the share price goes over $2.50? Am I missing something because this sounds like a no-brainer? Even if share price tanks again I have an .80/share cushion.

[relmor2003]

I would think that the uncertainty over the GM and Chrysler situation would lead overall to less car sales and not automatically to people buying another brand.

I have no clue what crazy things people think. If im buying a new car, Im buying a new car. If your leasing a GM vehicle, you can still turn it in for another GM vehicle. BK wont stop the business, for one second. Uncertainty should be in the main markets(up still) and with GM stock(down.) As for its effect on Sirius(minimal to none, and their are scenarios were it would actually benefit Sirius, we just dont know how(increase in other brands, or reworking of GM XM contract). So selling on this news is a bad idea long term, but may work out for you short term. Long term with sirius stock is around 4 days.

[exilejeff]

exilejeff, here is an example. I bought 200 RIG this morning at 59 $ and sold them as covered calls April 60 $ for 3 $. This reduces my cost to 56 $, but limits my profit to 4 $ or 800 as a total.
In your case, you would keep the stocks but collect money by selling the calls, unfortunately you would only get a total of 3.30 $ per share.

looks like i need to do more reading on options lol

but in layman's terms:
u bought 200 shares at $59 and sold them at $60 for april at $3 a piece.....so u bank money today.....but have to sell at $60 at a certain date regardless of the stock price?
what are the implications if.....
1. stock goes to say $50 by april
2. $70 by april

wait isn't april tomorrow? or is it a specific date? this may not make sense at all, and if it doesn't then i am just confused lol

[exilejeff]

OK Choirgirl, I've never dabbled in options before so let me see if I understand this.

If I own 1,000 shares of SIRI, I can sell Jan 2011 $2.50/share covered calls @ .80/share (?) and pick up $2,800.00 but risk the shares being called if the share price goes over $2.50? Am I missing something because this sounds like a no-brainer? Even if share price tanks again I have an .80/share cushion.

she was talking about my GM shares i believe :P

[bananaz]

Oops!

she was talking about my GM shares i believe :P

[lloyd Handwerker]

I have no clue what crazy things people think. If im buying a new car, Im buying a new car. If your leasing a GM vehicle, you can still turn it in for another GM vehicle. BK wont stop the business, for one second. Uncertainty should be in the main markets(up still) and with GM stock(down.) As for its effect on Sirius(minimal to none, and their are scenarios were it would actually benefit Sirius, we just dont know how(increase in other brands, or reworking of GM XM contract). So selling on this news is a bad idea long term, but may work out for you short term. Long term with sirius stock is around 4 days.

Well all i know is that Rick Wagoner kept saying they didn't want to take the
bankruptcy route because even if they came out of it quickly he thought GM would be percieved as damaged goods and less people would be inclined to buy their product.

[choirgirl]

Keysmark, symbol is VGNAZ and the 5 $ is VGNAA (45 cents, might even better ).

Where you you see Jan 2011 2.50 Calls? TD Amer & Yahoo only show up to 2010. What is the symbol?

Thanks

[FoolNHisMoney]

Well 1st quarters auto sales are released tomorrow. If they are lower than expected we shall see if the stock goes down. That would be my logical quess.
We are arguing about semantics. I am not saying that is "CORRECT" that people react that way just that its logical to expect it. By the way I own 80,000 shares for the long term.

lloyd, my understanding is that March numbers will be out Friday. I imagine Q1 numbers will be concurrent with March numbers, so I would not expect them until then.

[winagain35]

Where you you see Jan 2011 2.50 Calls? TD Amer & Yahoo only show up to 2010. What is the symbol?

Thanks

Check Yahoo
VGNAZ is the symbol for the Jan 2011 2.50 - currently trading at .71

[Keysmark]

Keysmark, symbol is VGNAZ and the 5 $ is VGNAA (45 cents, might even better ).

Thanks for the reply.